Double Trouble for Toyota

A major recall of vehicles around the globe on malfunctioning window switches could further depress declining sales the company faces in China.

Published

about 1 year ago

Categories

Finance

Topics

Auto

Places

China, Japan, United States of America

Companies

Toyota Motor Corporation

Tags

auto industry

Transcript

A big headache for one of the world's big automakers. Toyota recalling 7.4 million models around the world due to malfunctioning window switches. Cars affected include some of Toyota's most popular models - Vios, Corolla and Yaris. The biggest number of recalls will be in the key U.S. market - More than a million in Europe. But 1.4 million vehicles recalled in China - the world's fastest growing car market. But Paul Newton says the risk is more theoretical than dangerous: (SOUNDBITE) (English) AUTO ANALYST, IHS GLOBAL INSIGHT, PAUL NEWTON, SAYING: "This really is quite minor in terms of... the risk is theoretical, it affects an awful lot of vehicles, but nobody has been hurt and there is no reported incidents of fires or anything else." The news is double trouble for Toyota, now struggling in China on the back of rising political tensions with Japan. Toyota sales in China nearly halved in September while other foreign carmakers such as BMW gained traction. China accounts for over ten percent of Toyota's sales. (SOUNDBITE) (English) AUTO ANALYST, IHS GLOBAL INSIGHT, PAUL NEWTON, SAYING: "The spat between China and Japan is really quite serious and we're actually working on our next forecast, with a view to Chinese sales of the Japanese automakers really seriously down from where we thought they would be because of this." After an excellent start to the year the company's share price has wobbled in the past 6 months. With its quality control called further into question Toyota could face a further sad tune in China and beyond. ENDS